Despite this week's turbulence, global markets are still close to historically high levels.

Analysts have also pointed out that corrections of this kind are normal.

The US stock market began its current wobble last Friday after strong wages and jobs figures suggested inflation could increase and the Federal Reserve might raise interest rates faster than expected.

Scott Wren, senior global equity strategist for Wells Fargo Investment Institute, said: "Far and away the most important things are the fear that the Fed is going to make a mistake, and higher wages are going to cut into margins."